WEX Inc. (NYSE:WEX) shareholders are probably feeling a little disappointed, since its shares fell 4.2% to US$124 in the week after its latest quarterly results. Results were roughly in line with estimates, with revenues of US$637m and statutory earnings per share of US$1.81. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Our free stock report includes 2 warning signs investors should be aware of before investing in WEX. Read for free now.NYSE:WEX Earnings and Revenue Growth May 4th 2025

Taking into account the latest results, WEX's 15 analysts currently expect revenues in 2025 to be US$2.60b, approximately in line with the last 12 months. Statutory earnings per share are expected to fall 12% to US$8.08 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.62b and earnings per share (EPS) of US$8.40 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for WEX

It might be a surprise to learn that the consensus price target was broadly unchanged at US$155, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on WEX, with the most bullish analyst valuing it at US$200 and the most bearish at US$130 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 0.6% annualised decline to the end of 2025. That is a notable change from historical growth of 12% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.6% per year. It's pretty clear that WEX's revenues are expected to perform substantially worse than the wider industry.

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The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for WEX. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for WEX going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified  2 warning signs for WEX (1 is a bit concerning)  you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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